Acceptance under the State Contract

The Office of the State Treasurer is pleased to welcome your agency as a new participant in the Treasurer’s Merchant Credit Card Program. The following will explain how the agency will be billed and what is needed to receive these services.

Deposit of Credit Card Proceeds

State agencies that have lock box accounts at BancFirst or eLock box accounts at Chase can choose to have their credit card proceeds settle in those accounts. Otherwise, all credit card proceeds will deposit to the central account that has been used by Treasurer’s Office. The Treasurer’s Office will automatically deposit the credit card monies into the Agency Clearing Account or the lock box when they are received. The deposits will be booked by credit card type. Visa and MasterCard settle together as one card type, Discover is another type, and American Express yet another. The agency will be sent a deposit receipt which will break down the credit card deposits by location as the Treasurer’s Office receives the funds.

Chargeback’s will be netted from deposit proceeds. The agency can be setup with on-line access to Bank of America’s system to aid in the reconciliation process. Assistance in performing basic queries and report generation can be provided by OST. Bank of America will assist with the more complex custom reports if needed. There will be no charge to the agency for the use of this system.

Fees Accessed for Acceptance

All transaction are assessed an authorization fee of $0.055/transaction under the State contract with Bank of America in addition to the pricing below:

Visa Fees: Each transaction is assessed a dues and assessment fee of 0.11% and a Network and Acquirer Fee (NAPF) of $0.0195. Lastly, each transaction is assessed a fee called interchange based on the card type accepted.

MasterCard Fees: Each transaction is assessed a dues and assessment fee of 0.11% and a Name and Brand Usage Fee (NABU) of $0.0195. Lastly, each transaction is assessed a fee called interchange based on the card type accepted.

Discover Fees: The rate for Discover is 1.80% for Credit Cards, 1.44% for Prepaid/Debit Cards, and 2.34% for Commercial and Business Cards.

American Express: The rate for American Express is 2.35% for Credit Card and 1.80% for Prepaid Cards.

Statutory Authority

The statutory authority for this contract, state agency authority to use it and state agency authority to pay Bank of America for the discount fees can be found in Title 62, Section 71 (C).